Bankrupt Redbox Parent Chicken Soup For The Soul Entertainment Gets Judge’s Preliminary OK For Plan Restoring Employee Pay And Benefits
deadline.comEmployees of Redbox parent Chicken Soup for the Soul Entertainment are on track to resume getting their regular pay and benefits under a loan agreement given initial approval by a bankruptcy court judge.
The roughly 1,000 workers at the company have gone without pay for at least two weeks, in some cases longer. Chicken Soup filed for Chapter 11 bankruptcy protection last weekend after months of financial struggles.
Delaware U.S. Bankruptcy Court Judge Thomas M. Horan on Thursday issued an order signing off on an $8 million “debtor in possession” loan following a preliminary hearing on Wednesday.
The order is subject to a final hearing in the coming days. Of the total loan amount, up to $3.5 million will go toward past due payroll and payroll due today (July 5), up to $2.85 million will be earmarked for payroll deductions and another $1.65 million for payments to Anthem for health care premiums.
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